What are his priorities?
In an interview with Bloomberg earlier this year, Mr Srettha said he wants to stimulate the economy that is lagging the growth of its neighbours and bridge the gap between the rich and the poor.
He was the one to unveil Pheu Thai’s “digital wallet” scheme that would give every Thai who is 16 years old and above 10,000 baht each.
Mr Srettha will also have to follow through with Pheu Thai’s campaign pledges such as a 70 per cent hike in minimum wage, household income guarantee of 20,000 baht per month and tripling of farm profits to lift economic growth to 5 per cent.
What are the challenges he will face?v
The economy faces headwinds from a slowdown in China, which has hurt Thai exports, and a slow return of Chinese tourists.
It is also grappling with a long-standing problem of high household debt that’s more than 90 per cent of the nearly US$500 billion (S$679 billion) economy.
Mr Srettha will need to balance the interests of the conservative and military personalities that continue to dominate Thai politics against the clamour of a younger voting base that’s only getting more drawn to Move Forward.
With Pheu Thai joining hands with a party backed by former junta leader Prayuth, who was responsible for overthrowing a previous Shinawatra-led government, Mr Srettha must ensure his party’s base is not eroded.
His government will also need to deliver on a promise to quickly rewrite the constitution to make Thailand more democratic.
How do investors view him?
Mr Srettha and Pheu Thai are likely to be perceived favorably by investors, given their pledge to stimulate the economy through state spending.
Policies such as cash handouts and minimum wage hike will be positive and a Pheu Thai-led government may help drive the stock market higher, Citigroup analysts including Kaseedit Choonnawat and Ferry Wong wrote in a report last month.
Pheu Thai also promised to cut electricity tariffs, push more free-trade agreements to attract foreign investments, and take steps to legalise gambling, which is likely to be lauded by investors.
Foreign investors have dumped about US$3.8 billion of Thai stocks this year, triggering an almost 9 per cent slump in the main stock index to rank it among Asia’s worst performers.
If elected as PM, Mr Srettha must reassure investors that he can boost the economy and tackle structural hurdles holding up Thailand’s progress.
He must also ensure that his government can withstand all the twist and turns of Thai politics. BLOOMBERG
